Investment Rating - The report assigns a "Buy" rating for Trip.com Group (TCOM) with a 12-month price target of $78.00, indicating an upside potential of 25.1% from the current price of $62.33 [1][12]. Core Insights - The report highlights Trip.com Group's strategic path to becoming the leading Online Travel Agency (OTA) in Asia within the next 3-5 years, emphasizing a full-funnel marketing strategy to enhance value for both suppliers and customers [1][19]. - The company aims to increase its overseas revenue contribution to approximately 50% in the long run, up from 35% currently, indicating significant growth potential outside of China [1][18]. - Management has established a $100 million Tourism Innovation Fund to support the development of the tourism industry, showcasing a commitment to innovation and growth [1][20]. Financial Projections - Revenue is projected to grow from RMB 53,294 million in 2024 to RMB 77,228.5 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 19.7% [6][16]. - EBITDA is expected to increase from RMB 17,070 million in 2024 to RMB 23,500 million in 2027, with an EBITDA margin projected to stabilize around 30% [6][13]. - Earnings per share (EPS) is forecasted to grow from RMB 26.20 in 2024 to RMB 33.53 in 2027, indicating a strong profitability outlook [6][16]. Market Strategy - Trip.com Group is focusing on a full-funnel marketing strategy to improve sales conversion rates and enhance partner sales, with significant marketing campaigns planned throughout the year [1][19]. - The company is investing in technology and customer service, aiming to differentiate itself through high service quality and innovative solutions, such as AI-enhanced travel assistants [1][20]. - Management is prioritizing global expansion, particularly in the Asia-Pacific region, through active marketing investments and localized product development [1][19]. Competitive Position - The report notes that Trip.com has achieved positive net profit in markets like Hong Kong, Macau, and Singapore, capturing a significant market share in these regions [1][19]. - The competitive landscape is described as benign, allowing Trip.com to attract customers with competitive pricing strategies [1][19]. - The company aims to achieve comparable profit levels to global peers like Booking.com through economies of scale and improved operational efficiency [1][19].